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MCom 2nd Year Transferability Analysis Study Material Notes

MCom 2nd Year Transferability Analysis Study Material Notes

MCom 2nd Year Transferability Analysis Study Material Notes

MCom 2nd Year Transferability Analysis Study Material Notes: In this post, we will learn about MCom 2nd Year Transferability Analysis Study Material Notes. In MCom 2nd Year there is one of the most important questions comes from Promotion. You will learn about MCom 2nd Year Transferability Analysis Study Material Notes. 

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MCom 2nd Year Transferability Analysis Study Material Notes
MCom 2nd Year Transferability Analysis Study Material Notes

TRANSFERABILITY ANALYSIS

Normally, there are two aspects to consider in the advertising proposition for international transfer : (A) the purchase proposal and (B) the creative presentation.

[A] Buying or Purchase Proposal means the content, not the form, of the advertisement. The most relevant factors and persuasive are the centers of advertisement. (MCom 2nd Year Transferability Analysis Study Material Notes)

[B] The Creative Presentation refers to the transferring of a purchase proposal into an advertising message, which has the main line idea and all the viable and verbal factors of the advertisement.

Both the aspects are not similar to one another. They have some differences and the differences may be illustrated with the reference to toothpaste. In this example, the cosmetic benefit would be the purchase proposal and the cavity prevention would be considered a creative presentation. Creative presentation is tougher to transfer in the overseas markets while buying purchase offers is far easier to transfer across countries’ boundaries. (MCom 2nd Year Transferability Analysis Study Material Notes)

The creative presentation has such a problem only because certain requirements are based globally and the motivation of consumers for such products and services do not differ very much.

For Instance: Every nation has the same expectations for laundry detergent. Similarly, those businessmen who often use airlines services want punctuality is very important for businessmen who fly very frequently, regardless of their nationality,

While the creative presentation is troublesome to transfer in its original shape. The unimpaired transfer of creative presentation may face the following obstacles. (MCom 2nd Year Transferability Analysis Study Material Notes)

1. Competitive Barriers. Competition for making a product popular in overseas markets is a very important obstacle. The degree of this competition varies from one country to another nation. This competition may often compel changes in advertising viewpoint for peculiar positioning. (MCom 2nd Year Transferability Analysis Study Material Notes)

2. Legislative Obstacle. Every country imposes some rules and regulations on advertising. Every nation has imposed different restrictions on the advertising industry. (MCom 2nd Year Transferability Analysis Study Material Notes)

3. Communication Obstacles. The need and choice vary from one nation to another. A product that is funny for one country may be foolish for another nation. In the Exxon tiger’s ad, putting a cartoon character in the gas tank did not make sense to swedes.

4. Cultural Barriers. Women are accepted without quarries as the family spokespersons in many Anglo-Saxon nations. But in Latin America, women do not have the same position or much less so in Latin America, and in Muslim nations rarely women are accepted as family spokespersons. (MCom 2nd Year Transferability Analysis Study Material Notes)

5. Instrumentation Barriers. Poor printing and reproduction might be included in implementation barriers. The cause of those barriers are:

(i) The level of facilities available or limited resources. 

(ii) The compulsion of using local landscape and models to escape negative inference. 

It would be naive to hope that a standardized creative presentation could succeed worldwide. Thus, proper marketing research should be guided to determine which factors of the creative presentation can be kept in mind which must be replaced, and what must be added. (MCom 2nd Year Transferability Analysis Study Material Notes)

MEANING OF PERSONAL SELLING

Selling has many methods and personal selling is one of them. Personal selling is the process of assisting and persuading a prospective buyer to purchase & a product in a face-to-face situation. This method of selling creates direct contact between the seller and purchaser. This method is most effective in selling the products. Personal selling helps to promote the product and it increases profitable sales by offering want-satisfying products or services to the consumer.

In the words of Pederson and Wright, “Personal selling or salesmanship is the process whereby the seller ascertains and activates the needs or wants of the buyer and satisfied the needs or wants to mutual continuous advantages of both the buyer and the sellers.”

Personal selling has face-to-face contact between the seller and purchaser with the motive of selling the products or services.

The objective of personal selling is not to ensure only present sales, but to win a regular consumer or permanent customer. According to G. Blake, “Salesmanship consists of winning a regular and permanent customer.”

Personal selling is pervasive in nature. Personal selling results in many benefits for both seller and customer. The salesman must be friendly in nature if he does not do the same, he has to pay only in the short run. Aggressive selling is ethically bad. The needs and wants of customers may be fulfilled by a good salesman. The salesman should use a problem-solving approach to ensure customer satisfaction. (MCom 2nd Year Transferability Analysis Study Material Notes)

Personal selling takes place whenever a customer is met in person by a representative of the marketing company. When doing business internationally, companies will have to meet customers from different countries. These customers may be accustomed to different business customs and may speak various languages. That is why personal selling in an individual context is extremely complex and requires some very special skills on the part of the salesperson.

FEATURES OF PERSONAL SELLING

It is clear from the above information that personal selling has the following features:

1. Personal Selling Aims at Reciprocal Advantage. Personal selling is a two-way process or there should be at least two parties first the seller and the second the purchase. Personal selling is beneficial for both parties. It is useful in solving the quarries of customers and satisfying their needs. (MCom 2nd Year Transferability Analysis Study Material Notes)

2. Personal Selling Involves Providing Information. Personal selling is the process in which the buyer gets adequate information about the product because the seller provides all the information face-to-face to the customer. The information includes the information about the product available and their broad features and their uses and utility to the consumers. Thus, personal selling is an educative process. (MCom 2nd Year Transferability Analysis Study Material Notes)

3. Personal Selling involves Gaining Consumers’ Confidence. Presently, personal selling aims at educating the consumer and providing a solution to customers’ problems. If a seller does the same he can use the confidence of the customer. The seller should honestly provide the information about the product. Because cheating, misrepresentation, dishonesty, etc. may be the cause of losing the confidence of customers forever. (MCom 2nd Year Transferability Analysis Study Material Notes)

4. Personal Selling Involves Convince of Consumers. A personal seller must have the ability to convince the consumer. A personal seller may increase their sales by convincing people to buy his product. Thus, personal selling is the dexterity of handling people and convincing them to purchase a certain product or service, or idea.

The differences between advertising and personal selling are as follows:

1. Personal or Direct Contact Personal selling is the process in which the seller has face-to-face contact with the purchaser. On the other hand, advertising does not have personal or face-to-face contact with its customers or it is a non-personal form of communication. (MCom 2nd Year Transferability Analysis Study Material Notes)

2. Message. The message in personal selling is exact and flexible which may change in the different sales presentations. While the message of advertising Es common for all those who came across a specific media of advertisement. Advertising spread the same message for all sales presentations. (MCom 2nd Year Transferability Analysis Study Material Notes)

3. Objective. The objectives of personal selling and advertising also vary. The objective of personal selling is to attain sales by satisfying customers. While advertising does not have a single objective whereas it has multiple objectives. For example (i) Increasing sales, (ii) Creating a firm and desired position of a product in the market, (iii) Introduction of new product or service, nd (iv) Fighting against the competition. (MCom 2nd Year Transferability Analysis Study Material Notes)

4. Media. Personal selling has face-to-face contact with the customer. It includes oral and gestural communication. Advertising has big support from the media because a large number of media components are used in this way. newspapers, T.V., posters, cinema halls, Magazines, window displays, etc. are involved in the presentation of advertising.

5. Effect. Salesmanship involves communication with each purchaser or consumer. The effect of personal selling is apparent in the people who come in contact with the salesperson. On the other hand, advertising is mass communication which is to a high level of the number of people the effect using is depending upon the coverage of media issued.

IMPORTANCE OF PERSONAL SELLING

The importance of personal selling varies from industrial products to consumer durables and to consumer products. For industrial products, products to sat products to Dec, etc., personal selling is essential to provide technical information of the product the

However, personal selling plays a pilot role in international marketing even to consumer goods as the firm and its products are new to the foreign markets Avon and Am way used personal selling in European and Asian Countries in American international group employed 5,000 salespeople in Shanghai (China) to sell his life insurance policies. The companies appoint the motives as sales in person for their personal selling as they are better aware of the country’s culture and build the relationship.

Personal selling has the following importance to a different groups:

1. For the Traders and Manufacturers. Nowadays marketing of goods & and service is very difficult because in the market many competitors are available » or present and everyone wants to prove himself. This objective may be achieved by using advertising and personal selling. Advertising and personal selling are helpful in increasing the sale of goods. But it is not sure that they always work the same because sometimes, advertising personal selling, and publicity does not bring the wanted issue as there is no direct contact or face-to-face communication with the customer or receiver.

Face-to-face communication between the customer and salesperson makes secure sales for the marketing organization and satisfaction for the customers or buyers. Personal selling is. an important factor of the promotional mix of any organization. And it is able to make satisfied the consumers. Personal selling is composed of single and personal communication in opposition to mass impersonal communication through advertising. This characteristic gives the advantage of being more flexible in operation to a person selling.

The salesperson must consider the needs, motives, and behavior of a single or particular consumer his sales presentation must be based on that information. That information may be observed from the customer’s reaction to a specific sales approach and then more required adjustments on the spot. Minimum of wasteful efforts are included in persona selling. Personal selling is very helpful in choosing the right marketplace and concentrating only on future customers.

Sales promotion is becoming easy through personal selling. Personal selling is important for manufacturers and traders because it is useful to establish face-to-face contact with the customers and sell their products or services Manufacturers may know what things are required by customers and sell may concentrate on required products. Sales are increased by this activity. Because a good salesman has a quality to establish personal support wi customers, this condition helps a business to gain permanent or regul customers which is the main objective of every business firm. (MCom 2nd Year Transferability Analysis Study Material Notes)

2. Importance for the Consumers and Society. Customers get information about the product through personal selling. Because personal selling is a momentous method of explaining the qualities and uses of a product. An explanation of a product persuades a person to purchase a product or service. A customer purchases the product after taking proper information about that because the explanation of the product helps the customer to purchase want satisfying products. So, personal selling is very important from the point of the buyers. (MCom 2nd Year Transferability Analysis Study Material Notes)

A good salesman guides and educates the people about the features and life of the product the proper utilization of the product is possible through sufficient knowledge of the use of products. Face-to-face contact helps manufacturers to take appropriate action for satisfying the customer. If a customer is not satisfied with the existing product he may tell his queries to the salesperson and this information is communicated to the manufacturers. Another advantage of this type of selling is that it can handle the cause of injury of the purchaser. (MCom 2nd Year Transferability Analysis Study Material Notes)

A good personal seller is always helpful for the customers because it helps consumers to come to a destination at the correct decision while purchasing the particular product. The personal seller acts as a guide for the purchaser because he provides accurate information about the use of products and the fresh appearance of products in the place of purchase and sale or market. The customer becomes Jenables to know the various uses of a product and to fulfill their needs, wants and purchasing capacity. After taking the information customer can decide the best one to purchase. The customers can spend their money on purchasing different products.

It is clear that personal selling is not the only act to assure firmly people to purchase particular goods. But it is an act of supporting them in the satisfaction of their wants. Salespersons are also useful for society. Society helps the salespersons to increase production and it also helps to increase the chances of employment. The salesperson provides information about the product to a customer. In this way, the salesperson educates the people about new product and improve the standard of living of the society. Salespersons are helpful in making equilibrium between the supply and demand this condition decreases the fluctuations in price.

In this modern era, every business persons know the importance of personal selling in the progress of the business. These businesses spend a huge amount to select a proper personal seller and for the training and maintenance of competent sales staff. The significance of personal selling is testimonies not only by its worldwide use and variety of forms but also by the obvious fact that without personal selling the whole marketing mechanism would break down.

WORLD TRADE ORGANISATION (WTO)

The World Trade Organisation (WTO) was established on 1 January 1995 as a successor to the General Agreement on Tariffs and Trade (GATT) which was established in 1947. The member governments of GATT had concluded the Uruguay Round Negotiations on 15 December 1993 and the ministers had given their political support to the results by signing the final Act at a meeting held in Marrakesh, Morocco in April 1994. (MCom 2nd Year Transferability Analysis Study Material Notes)

The Uruguay Round concluded at the end of 1993, reduced tariff and non-tariff barriers to trade in merchandise goods, we trade in major areas such as agriculture, textiles, and clothing, and a multilateral rule to new areas, notably services and intellectual. The establishment of the WTO is the embodiment of the Uruguay results. The WTO is headed by a director general (currently Mr. Renato Ruggiero, former Italian trade minister) who is assisted by four deputies from different member states. The director general is appointed by the Genere Council for a four-year term after consultations among member countries,

The World Trade Organisation provides the principal contractual obligation to determine the manner in which the member governments shall frame and implement domestic trade legislation and regulations. It is the platform on which trade relations among countries evolve through collective debate ag negotiations and adjudication. At present, the membership of the WTO is 12 on and it is located in Geneva, Switzerland. (MCom 2nd Year Transferability Analysis Study Material Notes)

OBJECTIVES AND FUNCTIONS OF WTO

The essential functions of the WTO are: 

(i) To resolve trade disputes among members. 

(ii) To administer and implement the multilateral and plurilateral trade agreements which together make up the WTO. 

(iii) To act as a forum for multilateral trade negotiations. 

(iv) To co-operate with other international institutions involved in global policy making. 

(v) To oversee national trade policies.

DIFFERENCE BETWEEN THE SUPERIORITY OF THE WTO OVER THE GATT

1. Multilateral Trading System. A number of simple and fundamental principles run throughout all of the instruments which, together make up the multilateral trading system.

2. Predictable and Growing Access to Markets. The multilatery1 trading system is an attempt by governments to provide investors, employers employees, and consumers with a business environment that encourages tace investment and job creation as well as choice and low prices in the marketplace. Such an environment needs to be stable and predictable, particularly for businesses to invest and thrive. (MCom 2nd Year Transferability Analysis Study Material Notes)

Many WTO agreements seek to ensure that conditions of investment and trade are more predictable by making it very difficult for member governments to change the rules of the game at a whim. In almost every policy area whid impinges on trading conditions, the scope of members to sue capricious discriminatory and protectionist policies is constrained by W.’s commitment

3. Promoting Fair Competition. The WTO is a system of ales dedicated to open, fair and undistorted competition. Its rules on non-discrimination are designed to secure fair conditions of trade and so to are those on dumping subsidies, the previous GATT rules begin extended and clarified in agreements. (MCom 2nd Year Transferability Analysis Study Material Notes)

4. Trade without Discrimination. The famous ‘Most Favoured Nate (MFN) clause members are bound to grant to the products of other meet treatment no less favorable than that accorded to the products of any country. Thus, no country is to give special trading advantages to another and discriminate against it; all or on an equal basis and all share the benefits of moves towards lower barriers.

5. Encouraging Development and Economic Reform. Over quarters of WTO members are developing countries and countries in the process of economic reform from non-market systems, who are prepared to take on most of the obligations required for developed countries. They have been given transition periods to adjust to the more unfamiliar and perhaps, difficult WTO provisions particularly for the poorest, ‘least developed countries. (MCom 2nd Year Transferability Analysis Study Material Notes)

6. Increased Fairness in Farm Trade. The WTO agreement on agriculture is designed to provide increased fairness in farm trade. Agreement on intellectual property will improve conditions of competitions where ideas and inventions are involved and the GAITS will do the same thing for trade-in services. The plurilateral agreement on government procurement will extend competition rules to purchases by thousands of government entities in many countries.

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